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Office lease definition

What is effective rent?

A calculated rent measure that reflects selected incentives or costs over a stated period and methodology.

Updated 2026-09-12
Fast answerA calculated rent measure that reflects selected incentives or costs over a stated period and methodology.

Why it matters

Different calculations may include different items, so two effective-rent figures may not be comparable.

What to request

Ask for the formula, cash flows, timing, discount rate, area basis and included costs.

Planning example

Label every effective-rent result with its assumptions. The example organizes arithmetic or evidence only; the transaction documents and facts determine the result.

Related decisions

Connect this term to the area, cost, building, flexibility and document provisions elsewhere in the office decision file.

Evidence boundary: office availability and quoted economics change. Confirm current premises, authority, area, costs, permitted use and documents for the specific transaction. Read the methodology.

Effective rent questions

Plain-language answers for Canadian office decisions.

What does effective rent mean in an office lease?

A calculated rent measure that reflects selected incentives or costs over a stated period and methodology.

Why does effective rent matter?

Different calculations may include different items, so two effective-rent figures may not be comparable.